Inventory Optimization

Uncertainty must be managed by an inventory optimization solution . Key Factor Two: Inventory Optimization Must Match Your Organization Planning Process Your organization has a planning process. Bet it not perfect. However, it does dictate how youll go about the job of gaining support and successfully implementing your inventory optimization initiative.

An inventory optimization system is designed to help companies increase accuracy and overcome these issues in order to enhance customer service and lower operational costs. What is inventory optimization? The core objective of a good inventory management system is to provide the best possible customer service within the restraint of the lowest practical inventory costs.

This increases the overall cost of inventory optimization and can also introduce signifi cant delays, making it diffi cult to accurately apply "inventory policy" and propagate the results across the extended supply chain. On a more technical level, the peripheral nature of separate inventory optimization solutions often requires the external duplication and manipulation of data.

How can you actually optimize inventory and gain all these key benefits and rapid returns on investment? Effective inventory optimization can be achieved by continually carrying out the following five activities. Since this is a continuous process, it is important to go over this list again to fine-tune inventory optimization and analyze performance.

name = TEC_WP; Case Study: Material Management Optimization by Lapiz Technical Services --> Email this to a friend View More Related Papers Receive White Paper Updates Case Study Description To be certain its materials management functions were up to par with industry best practices, a South African fertilizer plant obtained the services of an inventory optimization firm.

Replenishment is an area within operations where retailers can find a competitive edge. Excelling at replenishment enables implementation of promotional, pricing, and assortment strategies. Also, profit can be gained by minimizing inventory levels and reducing lost sales. This increases time for analysis and special projects, as it?s no longer necessary to fight the fires of overstock and out of stocks.

All companies use some form of sales and operations planning (S&OP) to synchronize market data with production output. But most practice a planning process based on logistics rather than strategy. Taking a more strategic approach, however, the S&OP process can be designed to bring together a company?s marketing, finance, sales, and operations departments to continuously monitor?and meet?customer demand.

Automotive parts manufacturers are fighting for survival in a competitive global economy. Many rely on enterprise resource planning (ERP) systems to ensure they survive. However analysts report that the majority of ERP implementations rarely come in as scheduled, frequently cost more than projected, and often don?t deliver satisfactory results. Learn what automotive parts manufacturers should look for in an ERP system.

For many distributors, inventory is the largest and perhaps the most important asset. Inventory ties up more money than buildings or equipment, and is often less ?liquid.? It is crucial, then, that distributors develop and use a comprehensive set of tools that allows close monitoring of the performance of inventory investments. Read more about simple measurements that can help you maximize your investment in inventory.

Distributors must ensure the quantity of products shown to be available in their software system agrees with what is physically in their warehouses. If it doesn?t, valuable time and money are lost as customers seek other suppliers, salespeople physically check stock, and buyers are forced to overstock. Learn the policies and procedures that can maximize your inventory management system to maintain accurate stock balances.